Question

Consider the following statements:

The “drain of wealth” from India to England under the “Home Charges” up till 1858 consisted of:-

1. Payment of dividend to the proprietors of East India company for payment to its shareholders.

2. Interest on loan taken by Indian government.

3. Profit of British Capital in India

4. Expenses of office of secretary of state.

Codes:

• A. 1, 2 and 3 only
• B. 2, 3 and 4 only
• C. 1, 3 and 4 only
• D. All of these

Answer 1

The correct option is A

1, 2 and 3 only

(Bipin Chandra) Here only 1, 2 and 3rd statements are correct. The fourth statements talks about Home charges or expenses of Indian Government in Britain. Till 1858 there was no such official institution when secretary of state was created in 1858. Hence 4^th statement is incorrect.

‘Drain of wealth”- The local point of Nationalist critique of colonialism was the drain theory. The nationalist leaders pointed out that a large part of India’s capital and wealth was transferred or drained to Britain in the form of:

1. Salaries and pensions of British civil and military officials

2. Interest on loan taken by Indian government

3. Profits of British Capital in India. And Home charges of the Indian Government in Britain (Now onward) later on the home government (in Britain) front the government of India Act. 1919 made that “secretary of state was hence forth to be paid out of British exchange.